Nervos Network (CKB)

From CryptoWiki

Nervos Network
Total supply25,992,442,042 CKB
Websitehttp://nervos.org/

Basics

  • Based in: Asia
  • Started in

"The Nervos Network describes itself as an open-source public blockchain ecosystem and collection of protocols. The Nervos CKB (Common Knowledge Base) is the layer 1, proof of work public blockchain protocol of the Nervos Network. It reportedly allows any crypto-asset to be stored with the security, immutability and permissionless nature of Bitcoin while enabling smart contracts and layer 2 scaling. It aims to capture the total network value through its "store of value" crypto-economic design and native token, the CKByte."

History

Audits & Exploits

  • Bug bounty program can be found [insert here].
  • From their blog (30-11-2020):

"In Q3 of this year, the Nervos Foundation engaged two leading security companies — Peckshield and Least Authority — to complete detailed audits in preparation for the Nov 16 launch of our CKB mainnet “Lina.”"

Bugs/Exploits

Governance

DAO

"The Nervos DAO is an inflation shelter from secondary issuance used to manage state storage and provide sustainable incentives for miners. Store of Value users can lock their tokens in the Nervos DAO and receive a proportional share of this inflation. In this way your tokens are never diluted beyond a fixed cap."

"The Nervos DAO is an inflation shelter from secondary issuance used to manage state storage and provide sustainable incentives for miners. Store of Value users can lock their tokens in the Nervos DAO and receive a proportional share of this inflation. In this way your tokens are never diluted beyond a fixed cap."

Self Funding Mechanism

"Based on how CKB is used, the secondary issuance is divided among miners, Nervos DAO depositors and a treasury fund (which is being burned until the ecosystem fund in the genesis block is depleted). So far over 73% of the secondary issuance is being burnt.

By depositing in the Nervos DAO, the CKB holdings will never be diluted by secondary issuance. The amount of CKB locked in Nervos Dao and the locked to circulation ratio have seen continuous growth. Below is a graph showing the growth of CKB circulating supply and Nervos Dao deposits since mainnet launch. As of writing, 8.78 billion CKB or 42.9% of the circulating supply) is locked in Nervos Dao.

Token

Launch

  • Seed round of 7-2018 brought $28M an their ICO of 10-2019 raised 72M

Token allocation

"A total of 33.6 billion CK Byte were issued at launch and allocated as follows:

  • 25% of the Genesis tokens burned (non-circulating) in the Genesis block and never enter the circulating supply.
  • 21.5% allocated to Public Sale investors
  • 14% allocated to Private Sale investors and vesting over two years, with two-third released upon mainnet
  • 15% allocated to the Team and vesting over four years, with one-third upon mainnet
  • 17% was allocated to an Ecosystem Fund
  • 5% was reserved for Strategic Founding Partners
  • 2% was reserved for the Foundation
  • 0.5% was allocated to Testnet Incentives

Founders & Project: 40.5%

Investors: 34%

AirDrops & Rewards: 25.5%"

Utility

  • Nervos supports a native utility token, the CKByte. CKByte is used for resource management and miner incentivization and entitles the holder to an allocation of state storage space on the CKB blockchain.

Token Details

"The native token of Nervos is known as CKByte or CKB for short. One CKB entitles one byte of data storage on the blockchain, and is used to pay transaction and computation fees. In addition to a hard-capped issuance of 33.6 billion CKB, as block rewards with the amount issued halving every 4 years like Bitcoin, Nervos also has a fixed 1.344 billion annual secondary issuance to incentivize miners in the longer-term. Based on CKB usage, the secondary issuance is divided among miners, Nervos DAO depositors and a treasury fund (which is being burned until the ecosystem fund in the genesis block is depleted). By depositing in the Nervos DAO, the CKB holdings will never be diluted by secondary issuance.

All applications need to utilize CKB for state storage, and the CKB being occupied forego the annual inflation rewards from the secondary issuance. This model automates state rent payments, i.e. applications running on chain that need to pay state rent to miners. The deposits in Nervos Dao and the deposit to circulation ratio have seen continuous growth. Here is a graph showing the growth of CKB circulating supply and Nervos Dao deposits since mainnet launch. As of writing, 6.51 billion CKB (~37.21% of the circulating supply) is locked in Nervos Dao with 3.42% APC (annual percentage compensation)."

"Based on how CKB is used, the secondary issuance is divided among miners, Nervos DAO depositors and a treasury fund (which is being burned until the ecosystem fund in the genesis block is depleted). So far over 73% of the secondary issuance is being burnt.

By depositing in the Nervos DAO, the CKB holdings will never be diluted by secondary issuance. The amount of CKB locked in Nervos Dao and the locked to circulation ratio have seen continuous growth. Below is a graph showing the growth of CKB circulating supply and Nervos Dao deposits since mainnet launch. As of writing, 8.78 billion CKB or 42.9% of the circulating supply) is locked in Nervos Dao."

Stablecoin

Coin Distribution

Tech

Transaction Details

Muta

How it works

"CKB's PoW algorithm, NC-Max, can adjust mining difficulty in response to network conditions, increasing throughput when the network of nodes is well-connected and slowing it when the block orphan rate passes a certain threshold.

Block time of 10 seconds"

Fee Mechanism

Upgrades

Staking

Liquidity Mining

Scaling

"The Muta sidechain is making very good progress. We have tested Muta on a network with 21 nodes and achieved a steady TPS (transaction per  second) rate of 4000 with finality of 3 seconds, and the network can keep processing at this speed. This is much better than any other PoS network or blockchain using BFT consensus. For example, EOS once achieved a peak rate of 3500 and sustained at a steady rate around 1000. However,  for finality they need to wait 180 blocks, while Muta only requires 1 block. Huobi chain that uses the Muta framework is expected to launch in Q4."

Different Implementations

Interoperability 

Other Details

"For those of you that aren't up to scratch, Nervos basically makes their native token the right to store data on the base chain rather than pay for computation. Each "storage cell" can also store custom logic/scripts that can be used to deploy contracts, libraries etc. It uses a UTXO model to combine the inputs of cells with their outputs. The idea around it is that eventually the token becomes a store of value as storage becomes scarce which incentivises a good value capture mechanism but also allows developers to build more storage efficient layer 2 solutions. One added benefit of the way they've designed their system is that you can deploy custom hashing/signing algos to sign transactions with which in theory would make it easier to support other encryption schemes for things such as SNARKs and STARKs without requiring an EIP style base layer change. Their docs have good and clear explanations about how the whole system works without too much jargon and seems relatively legit. You can read more here."

He then goes on to mention his critiques, which can be read below under Cons.

"Nervos [has] the sUDT technical standard, a native token standard launched by Nervos to compete with Ethereum’s ERC-20."

Oracle Method

Privacy Method

Their Other Projects

Roadmap

  • Can be found [Insert link here].

Usage

"As of writing, the number of addresses on CKB grew from 4k to 35.4k, while the amount of active cells grew from 10.1k to to 152.9k at mainnet launch. A cell is a generalized UTXO and the most basic structure needed to represent a single piece of data on CKB. All data on CKB is contained in cells."

Projects that use or built on it

"Huobi chain that uses the Muta framework is expected to launch in Q4."

Pros and Cons

Pros

Cons

"Okay so now that I've got that out of the way (the good parts can be read above under 'Tech'), why am I still not so excited about Nervos? Well for starters, they don't have any way for 3rd party developers to write "smart-contracts" from what the docs show. If you were to classify the progress a layer 1 has made in terms of developer utilities it looks a little something like this:

  1. You can deploy custom functionality but need very high insider context and a lot of help from the dev team
  2. There's docs you can read and maybe be able to deploy everything magically goes right and there's no quirks with the API (which there almost is because no dev internally will test their own stuff smh)
  3. Not only are there docs, but many 3rd party sources will teach you how to do the basics (deploy a token), read data off-chain etc.
  4. There's multiple implementations for each component in the stack: multiple node client implementations, multiple JS libraries to interact on-chain, multiple wallet providers
  5. Many developers have built useful applications with developer access to allow developers to create composable applications that magically work together with access to significant liquidity (able to sell at least $100k worth of native currency for USD with less than 0.25% slippage)

So where is Nervos on this scale? Level 1. It's basically where Ethereum was right when it launched 4 or so years ago (maybe even less since you could deploy contracts yourself when Ethereum launched). Furthermore, the whole thesis of optimising for layer 2 scaling is a bit weird to focus on when there's literally no activity apart from sending CKB on-chain at the moment. It's like claiming you have the usage of Ethereum and offering a solution to it except for the fact you have literally no-one using your chain. If there's one piece of advice I'd give layer 1 chains, identify a real use case which can attract a certain class of user orientated application and optimise for that - not technical things your chain can do."

Competition

Team, Funding, Partnerships, etc.

Team

  • Full team can be found [here].
  • Kevin Wang; co-founder

Funding

Sequoia Capital, Huobi Capital (which also builds on Nervos), Kindred Ventures, Dragonfly Capital

"Nervos is backed by established companies including Sequoia China, Polychain Capital and China Merchants Bank International (CMBI),  a wholly owned subsidiary of China Merchants Bank."

Partners

(:

Knowledge empowers all and will help us get closer to the decentralized world we all want to live in!

Making these free wiki pages is fun but takes a lot of effort and time.

If you have enjoyed reading, tips are appreciated :) This will help us to keep expanding this archive of information.

ETH tip address: 0x83460bE5F218b1520B69D702cE60A1DE37dD8E31

Also check out CoinTr.ee for more content.

Retrieved from "https://cryptowiki.me/index.php?title=Nervos_Network_(CKB)&oldid=10876"